Franchising in Australia Industry Market Research Report Now Updated by IBISWorld

Melbourne, Australia (PRWEB) April 26, 2015

The Franchising industry is expected to post weak annualised growth of 1.2% over the five years through 2014-15. The industry’s performance over the first half of the five-year period was influenced by the flow-on effects of the global financial crisis, which led to a slowdown across the domestic market and mounting uncertainty regarding the stability of the economy. A recovery in economic conditions over the second half of the five-year period returned the industry to growth and enabled operators to recuperate some of the ground lost in earlier years. According to IBISWorld industry analyst Claudia Burgio-Ficca, The industry’s performance over the past five years has also been affected by trends in real household disposable income, the average weekly hours worked by all employees and interest rates. Despite fluctuations in trading conditions, industry profitability is expected to grow modestly over the five years through 2014-15, primarily due to the proven operating model established by franchisors. Industry revenue is forecast to post steady growth over 2014-15, rising by 2.7% to $ 168.7 billion. Declines in industry revenue over the early part of the past five years have been mitigated by growth in disposable incomes, which has boosted the spending power of consumers. However, volatility in consumer sentiment has hindered demand for franchised goods and services, as individuals have become concerned about their ability to repay household debt.

Revenue growth over the next five years is likely to stem from increased demand for service-based franchises such as health, nutrition and wellbeing services, says Burgio-Ficca. Growth may also be driven by the industry’s capacity for change and innovation; the existence of a proven and replicable business model; extensive operational and marketing support; and branding, marketing and buying power. Online retailing is another area that is projected to grow over the next five years. The mature life cycle status of the industry is expected to result in a consolidation of enterprises during this period. Despite this, individual franchise systems are forecast to grow internally, leading to an increase in establishments and continued demand for staff.

The Franchising industry has a low level of concentration. The industry supports a number of large and well-established organisations. However, its size and a diverse and extensive range of products and services have limited the market share held by players. Barriers to entry are low and do not hinder new players from operating in the industry. Furthermore, overall capital requirements are low, but vary depending on the type of franchise segment operators are planning to enter.

For more information, visit IBISWorlds Franchising industry in Australia report page.

Franchising is a method of growing a business whereby a franchise owner (franchisee) is granted, for a fee, the right to offer, sell or distribute goods or services under a business system determined by the business founder (franchisor). The franchisor supports the franchised business group by providing leadership, guidance, training and assistance, in return for ongoing service fees.

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IBISWorld industry Report Key Topics

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

International Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Basis of Competition

Barriers to Entry

Industry Globalisation

Major Companies

Operating Conditions

Capital Intensity

Technology & Systems

Revenue Volatility

Regulation & Policy

Industry Assistance

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognised as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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